The scale of the entire underwear market has not stopped growing in recent years. National underwear sales are expected to reach 400 billion yuan by the end of 2019. So where does the growth come from? These new opportunities can provide opportunities for the transformation. What kind of inspiration does traditional brands and new private brands enter the market?
2020 is the underwear market In the year of reshuffle, after Victoria’s Secret closed 250 stores in the United States at one time, the British company also announced that it would go into bankruptcy and liquidation.
Metro Beauty, a Hong Kong-listed company known as “China’s Victoria’s Secret”, has just issued a profit warning and expects to continue losing no less than 120 million yuan in the first half of this year.
At this moment, another well-known domestic underwear brand, Aimer, disclosed its prospectus and rushed to be listed on the Shanghai Stock Exchange.
01 Underwear is a permanent incremental market
Currently, the annual sales of underwear in my country It is more than 400 billion, and is growing at a rate of nearly 20% every year. There are nearly 10,000 manufacturing companies in the underwear industry. The underwear industry is the “last piece of cake” in the clothing industry and it’s not for nothing.
As we all know, the rise and fall of underwear trends is very frequent. Colors, styles, fabrics, and styles are changing with each passing day. In order to enable underwear brands to penetrate deeply into consumer groups, segmentation The market is indispensable. Only by accurately locating the types of consumer groups can we better control the production and sales of products. Determining production based on consumer preferences is the best way to solve inventory and achieve profitability.
In the eyes of many traditional underwear people, underwear is nothing more than bras, pajamas, and warmth. item. In fact, this is not the case. Women’s underwear can be subdivided into n categories. Although it is a bit exaggerated, it is not an exaggeration. In the women’s underwear market, the age group is very large. According to relevant data, China’s population structure includes more than 650 million women. As far as the age group for wearing underwear is concerned, girls aged 10-15 have already begun to wear underwear, and most elderly people over 60 years old also need to wear underwear. Therefore, in the age stratification stage, the categories of underwear are also stratified. Each Different underwear corresponding to age groups. According to the age group, underwear can be divided into girls’ underwear, functional underwear for mature women and underwear for the elderly. This is one of the market segments.
02 The segmentation trend of women’s underwear is more obvious
As women’s spending power increases, they People’s fashion awareness and brand awareness are also increasing. The requirements for diversification, personalization and branding are increasing day by day, and they pay more attention to comfort and sensory stimulation. This is obviously a great opportunity for the underwear industry.
After more than 20 years of abnormal development, the “underwear” category will eventually return to its essential attributes, with brands and products positioned as “healthy, comfortable, and natural” Intimate clothing is far more suitable for the current female group who are awakening to independent consciousness than vulgar underwear that is positioned to charm men with sex appeal.
For example, the most significant change in the bra category is the return to the wire-free style. From wired to non-wired, it is a consumption upgrade for women’s underwear. The so-called consumption upgrade essentially means buying healthier and more comfortable products at the same price. During June 18, 2018, the top ten underwear sales on Tmall were all steel-free underwear. It represents the awakening of her economic, independent female self-awareness.
Taking “the transition from steel rims to non-steel rims” as a starting point, we can introduce another aspect, that is, the underwear market has spawned a large number of subcategories in response to personalized consumer demand. , to complete the entire process of consumption upgrade. These segmented categories are the starting point for the incremental growth of this 400 billion market.
Sports bras are a category that has grown very rapidly in recent years. The market size of this category reached 100 billion yuan in 2019, and the prospects are bright. Underwear for the elderly and children’s underwear will also enter the mainstream market. As we all know, both the elderly market and the children’s market have huge scales. When the demand for underwear from these two consumer groups increases, it will be a new outbreak period for the underwear industry. In addition, the segmentation of the underwear market is also reflected in women’s underwear. With the diversification of female consumers’ needs, market segments such as girls’ underwear and maternity underwear will also receive attention.
“The waves of the times will not submerge just one seaweed.” After Victoria’s Secret announced its exit, China’s local traditional underwear brands have also reached a critical moment of transformation. It depends on who can Take the lead in this 400 billion market.
03 The strength of underwear e-commerce cannot be underestimated
With Chinese retail Changes in business formats: It is predicted that in 2020, the number of users and market size of China’s social e-commerce will increase from 422 million people and 2,060.58 billion yuan this year to 773 million people and 3,000 billion yuan. The market size will further expand. At the same time, under the influence of the epidemic, staying at home has become the best choice for people to avoid disasters. Online shopping has also become the best consumption method for people to meet their daily needs. Social e-commerce is growing in traffic.��It has significant advantages in operations, channels, users and customer acquisition costs. Live streaming and social e-commerce are about to usher in a new round of development opportunities.
From a macro level, around the core of the underwear industry, including “product production, supply chain circulation, and terminal sales”, changes in these three major links are affecting the entire underwear industry and many entities. The core of industrial Internet transformation.
04 How to outperform underwear A battle for the market?
The expansion of e-commerce and underwear categories has brought opportunities to brands but also brought greater challenges to the supply chain. The digital transformation of traditional underwear brands is imminent. How to keep up with the rapid changes of consumers is the primary proposition faced by brand owners. In the era of digital economy, digitalization is the core characteristic of the new generation of consumers.
Will traditional brands rebound after hitting bottom? As a traditional labor-intensive industry, underwear has a long supply chain cycle. The degree of dependence on manufacturing workers is high, so the industry efficiency is low, and the degree of digitalization and intelligence of enterprise production and retail is low. The arrival of the epidemic has prevented a large number of workers from coming to work, resulting in a great impact on the production capacity of many enterprises, and the impact of the epidemic has further It almost caused the market to miss the ordering season, putting enterprises in the dilemma of fearing inventory when making goods and fearing shortages when not making goods. The essential reason is actually insufficient digitalization and intelligence. Therefore, the arrival of this epidemic will cause many business owners to learn a painful lesson and accelerate the digitalization and intelligent upgrading of their enterprises. </p
